Virgin Australia’s share price dipped below 10 cents on Monday – days after credit rating agency Standard & Poor’s downgraded its outlook to negative.
The drop represents an enormous fall from a high of $2.19 in February 2007. Virgin played down the developments, claiming any speculation of the future of the business was “untrue and misleading”.
Last week, Australian Aviation reported that the wider group announced a $97 million half-year loss and its intention to cut its Tigerair fleet.
A step-change acquisition to address the ever-increasing demand for sustainable mobility
Excellent strategic rationale bringing to Alstom: – Strong commercial and product complementarities – Strengthened product lines and strategic industrial capacity – Leading portfolio offering and R&D capabilities
Acquisition price from €5.8bn to €6.2bn
CDPQ to become the largest shareholder of Alstom with c.18% of the capital
Alstom announces today that it has signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (“CDPQ”) in view of the acquisition of Bombardier Transportation. Post-transaction, Alstom will have a backlog of around €75bn and revenues around €15.5bn. The price for the acquisition of 100% of Bombardier Transportation shares will be €5.8bn to €6.2bn which will be paid via a mix of cash and new Alstom shares. CDPQ will reinvest c.€2bn corresponding to 100% of cash proceeds to be received from the sale of its stake in Bombardier Transportation and further invest €0.7bn in Alstom, outlining its strong belief in the strategic rationale and value creation potential of the combination.
“I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market. This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility. Bombardier Transportation will bring to Alstom complementary geographical presence and industrial footprint in growing markets, as well as additional technological platforms. It will significantly increase our innovation capabilities to lead smart and green innovation. We will be thrilled to welcome all the talent and energy of Bombardier Transportation employees. We are deeply committed to step up the turnaround of Bombardier Transportation activities and deliver significant value to all stakeholders, particularly our customers. We will also further develop Bombardier Transportation’s historical presence in Québec, drawing on Québec’s well-established strengths in innovation and sustainable mobility. We are pleased to welcome CDPQ as a new long-term shareholder. CDPQ is fully supportive of the transaction and Alstom’s strategy.” said Henri Poupart-Lafarge, Chairman and CEO of Alstom.
A step-change acquisition
Alstom and Bombardier operate in a very positive market environment with passenger traffic expected to grow between 3% to 5% annually over the 2015-2025 period and global rail OEM market expected to achieve a +3.0% CAGR between 2021-2023. The dynamic is driven by urbanisation trend and a strong push for decarbonation of mobility. In Europe, the European Commission has set very ambitious targets in terms of CO2 reduction and several countries have announced large investments in rail.
Alstom is a preeminent rail equipment player with an industry-record backlog of €40bn and €8.1bn of annual sales as of 31-Mar-2019. Over the period 2016-2019, Alstom delivered strong sales development with an average annual growth of 5.5% outperforming the market, and significantly improved profitability (up to 7.5% adjusted EBIT margin).
Bombardier Transportation is a reference player in global rail transportation with a €32bn backlog and €7.4bn sales as of December 2019. With a track record of market leadership and a strong expertise, Bombardier Transportation offers a broad product portfolio across all market segments and has a well-balanced industrial footprint between best-cost and high-tech countries.
EXPLORATION PARK, Florida – 34 satellites for the OneWeb constellation are ready for launch from Baikonur, Kazakhstan. The satellites arrived in two shipments, including one last week, have been tested, and have now been fitted into the dispenser of the Soyuz-2.1b rocket. OneWeb’s upcoming launch of 34 satellites has been scheduled for Thursday 6 February 21:42 (GMT) / Friday 7 February 02:42 (local time) from the historic Baikonur Cosmodrome, Kazakhstan.
“This launch will be a massive step forward for OneWeb – one step closer to the ambition of improving global connectivity. These 34 satellites will join the six currently operating flawlessly in orbit. Our joint venture OneWeb Satellites produces two satellites a day – in series production, just like Airbus makes planes,” said Jean-Marc Nasr, Head of Airbus Space Systems.
The satellites, which are manufactured at 1/50th of the cost of a traditional spacecraft, are all fitted with plasma thrusters enabling them to reach their correct position in low Earth orbit at 1,200km.
“Watching the first batch of our factory-built satellites launch from the Soyuz will be the realisation of a four-year journey… and just the beginning,” said Tony Gingiss, CEO OneWeb Satellites. “Our factory continues to ramp up and streamline our production to deliver the next batch… and the next… and the next!”
The OneWeb constellation will provide global connectivity with an initial 650 satellites. OneWeb’s mission is to provide affordable, high-speed internet connectivity everywhere for everyone, by 2021.
After this first launch from Baikonur, OneWeb is planning to launch around 30 satellites with Soyuz rockets every month.
WASHINGTON (Reuters) – U.S. President Donald Trump called Boeing <BA> Chief Executive Dennis Muilenburg this week to ask about the status of 737 MAX production, two people briefed on the matter confirmed.
The call on Sunday was brief and Muilenburg assured Trump that the planned production halt was temporary and that the company would not be laying off any workers. The production halt, set to begin in January, was announced by Boeing Monday after a board meeting.
Boeing and the White House declined to comment on the call, reported earlier by the New York Times.
Separately, S&P Global Ratings on Thursday downgraded Boeing’s credit rating to “A-” from “A” and lowered the short-term rating to “A-2” from “A-1.”
The change “reflects the uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing’s competitive position.”
U.S. officials have repeatedly said they are waiting for additional answers from Boeing and have at time faulted the quality of submissions from the planemaker since the plane was grounded in March after two fatal crashes killed 346 people.
“We’ve had conversations about the importance of making sure that we are looking at complete documentation and not piecemeal documentation,” FAA Administrator Steve Dickson told Reuters in September. “It’s really better to be very methodical and very detailed rather than try to rush a partially completed product and then say, ‘We’ll get back to you with the rest of it.’”
Boeing has repeatedly said it is working with regulators to safely return the plane to service and acknowledged last week it would not occur until 2020.
Dickson said last week there are nearly a dozen milestones that must be completed before the MAX returns to service. Approval is not likely until at least February and could be delayed until March, U.S. officials told Reuters last week.
American Airlines Group Inc <AAL> and Southwest Airlines Co <LUV> have canceled flights into April because of the grounding.
(Reporting by David Shepardson; Editing by Nick Zieminski)
A Boeing [NYSE: BA]-built satellite called JCSAT-18/Kacific1 will provide affordable internet access and other communications services to underserved parts of Asia and the Pacific islands.
The satellite launched today from Cape Canaveral, Florida at about 7:10 p.m. It will enter service several weeks after on-orbit tests and moving to its final geostationary orbit position over the Asia-Pacific region.
Built on Boeing’s 702 satellite platform, JCSAT-18/Kacific1 has two separate payloads for two customers, SKY Perfect JSAT of Tokyo and Kacific Broadband Satellites Group of Singapore. The satellite will deliver internet services to a potential market comprising hundreds of millions of people in more than 25 countries, including remote islands in the Pacific and the far eastern part of Russia.
“JCSAT-18/Kacific1 is going to make a difference in the lives of millions of people throughout the Asia Pacific region,” said Chris Johnson, president, Boeing Satellite Systems International. “We are proud to support SKY Perfect JSAT and Kacific as they seek to bring positive change through connectivity in regions that have been traditionally underserved.”
JCSAT-18/Kacific1 is the 13th satellite Boeing has built for SKY Perfect JSAT and the first satellite built for Kacific.
CHICAGO, Dec. 5, 2019 /PRNewswire/ — United Airlines (NASDAQ: UAL) today announced that Oscar Munoz, Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of United Airlines Holdings, Inc. in May 2020. As CEO, Munoz has transformed United’s culture and set new standards of operational and financial performance. J. Scott Kirby, President, will succeed Munoz as Chief Executive Officer.
“With United in a stronger position than ever, now is the right time to begin the process of passing the baton to a new leader,” Munoz said. “One of my goals as CEO was to put in place a successful leadership transition for United Airlines. I brought Scott to United three years ago, and I am confident that there is no one in the world better equipped to lead United to even greater heights. It has been the honor of my career to lead the 95,000 dedicated professionals who serve United’s customers every day. I look forward to continuing to work closely with Scott in the months ahead and supporting the company’s ongoing success in my new role.”
Kirby was recruited to United Airlines by Munoz in August 2016, after a three-decade career in the commercial airline business. His appointment reflects a commitment from Munoz and the Board to preserve leadership continuity and demonstrates confidence in the airline’s strategy and current trajectory.
“When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I’m proud of how far we’ve come,” Munoz said. “Along with the successful implementation of the plan our team laid out in January 2018, United’s operational and financial performance isn’t just better – it’s better than ever. By instilling a culture of ‘proof not promise,’ we have transformed United even faster than we expected and there’s an incredible sense of excitement about the future.”
Kirby, a highly-regarded industry leader, has played a pivotal role in enabling United’s cultural transformation and successfully executing the company’s strategic growth plan.
“I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines,” Kirby said. “I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again.”
Munoz will serve as Executive Chairman for a one-year term and will continue to work closely with Kirby, the Board and the United team in shaping United’s employee and customer-centric culture. He will also lead the company’s Board and continue to engage on behalf of United with a range of external stakeholders.
As part of this transition, United’s current Chairman, Jane Garvey, will retire from the Board in May 2020 after more than a decade of exceptional service, including serving as Chairman since May 2018. At the request of the Board, Garvey agreed to remain in her role for a year beyond the Board’s mandatory retirement age.
“On behalf of the Board of Directors, I cannot thank Oscar enough for his outstanding leadership and commitment to United, and we are pleased that we will continue to benefit from his expertise and experience in his role as Executive Chairman,” Garvey said. “Oscar became CEO at one of the most challenging points in United’s history, and his focus on putting customers and employees first has transformed United’s culture today and successfully positioned the company for tomorrow. One of Oscar’s greatest legacies is the best-in-class leadership team he has built, and we have full confidence that Scott is the ideal candidate to lead United into the bright future that lies ahead.”
The company also announced that Ted Philip will become Lead Independent Director following the 2020 Annual Meeting of Shareholders. Philip joined the Board in July 2016 and chairs the Nominating/Governance Committee. He also currently serves on the Board of Directors of Hasbro, Inc. and BRP Inc.
“I could not be more excited about the opportunity that we have at United over the next several years to fulfill this airline’s incredible potential,” Philip said. “I am proud to work alongside Oscar in guiding United’s Board and leadership team, and I am eager to get to work on delivering for all of our stakeholders. The entire Board and I want to thank Jane for her many contributions to United over the last decade, including her highly successful tenure as Chairman.”
All of the changes announced today will take effect following the company’s Annual Meeting of Shareholders, scheduled for May 20, 2020.
Every customer. Every flight. Every day.
In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s news, United recently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.
MILAN (Reuters) – Italian tax authorities believe that Fiat Chrysler Automobiles <FCAU> underestimated the value of its U.S. business by 5.1 billion euros following Fiat’s phased acquisition of Chrysler, according to a company filing and a source close to the matter.
The audit, which concerns transactions dating back to 2014, could result in FCA having to pay back taxes for $1.5 billion, the source added, confirming a report by Bloomberg.
FCA said in its third-quarter report that the tax authorities had issued to the company a final audit report in October this year “which, if confirmed in the final audit assessment, could result in a material proposed tax adjustment related to the October 12, 2014 merger of Fiat SpA into FCA NV.”
It said the issuance of a final audit report starts a 60-day negotiation period, which ends with the issuance of a final audit assessment expected to be received by the end of December 2019.
“The company believes that its tax position with respect to the merger is fully supported by both the facts and applicable tax law and will vigorously defend its position,” it said in the third-quarter report.
A spokesman for Italy’s tax agency declined to comment.
“At this time, we cannot predict whether any settlement may be reached or if no settlement is reached, the outcome of any litigation. As such, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss,” Fiat said.
News of the tax probe comes at a delicate time for Fiat Chrysler, which is finalizing talks with PSA, the maker of Peugeot and Citroen, over a planned $50 billion merger to create the world’s fourth-largest automaker.
(Reporting by Silvia Aloisi in Milan; Editing by Anil D’Silva)
HONG KONG, Dec 2 (Reuters) – Cash-strapped Chinese conglomerate HNA Group said on Monday it has agreed a deal to restructure its low-cost carrier West Air with a Chongqing-based asset management firm.
Chongqing Yufu Asset Management Group and its affiliates will together hold at least 70% stake in West Air, becoming the biggest shareholder, HNA said in a statement.
West Air, established in 2007, operates about 160 domestic and international routes with a fleet of 35 airplanes.
It has been directly controlled by HNA, whose affiliates also own struggling Hong Kong Airlines as well as Hainan Airlines Holding Co Ltd.
Budget carrier Hong Kong Airlines was ordered by Hong Kong’s air transport regulator on Monday to shore up its financial position by Dec. 7 or risk the suspension or loss of its licence.
Hainan Airlines, which has seen declining profits, said in a Shanghai stock exchange filing on Monday that it will seek 4 billion yuan ($568 million) in loans from eight banks led by China Development Bank.
The funds will be used to cover the costs of fuel, maintenance charges, staff salaries and operational expenses, it said in the filing.
$1 = 7.0389 Chinese yuan renminbi
Reporting by Meg Shen; Editing by Edmund Blair and Susan Fenton
SYDNEY (Reuters) – Hong Kong carrier Cathay Pacific Airways Ltd <CPCAY> plans to cut passenger flight capacity by 1.4% next year, reversing an earlier plan for a boost of 3.1% because of a challenging business outlook, an internal memo reviewed by Reuters showed.
The capacity reduction follows Cathay Pacific cutting its second-half profit guidance earlier this month, the second cutback in less than a month, because of anti-government protests that began in Hong Kong in June that have discouraged travel to the city.
“Given the immediate commercial challenges and the fact that our position has deteriorated in recent weeks, we must take swift action to adjust our budget operating plan for 2020 downwards again,” Chief Executive Augustus Tang said in the memo.
“Put another way, rather than growing our airlines in 2020, for the first time in a long time, our airlines will reduce in size.”
Revenue performance continues to be disappointing and advance bookings into 2020 remain much lower than expected due to weak traffic from some of its key markets, particularly mainland China, the memo said.
A Cathay representative said the carrier had no comment.
Full-service carrier Hong Kong Airlines, backed by indebted Chinese conglomerate HNA, also said on Friday it would further reduce its capacity to mitigate the impact from the political unrest.
Several Asian airlines have also cut flights to Hong Kong, as the protests in the financial hub and an escalating China-U.S. trade war have pushed the Chinese-ruled territory into recession for the first time in a decade.
Hong Kong has enjoyed a week of relative calm since local elections on Sunday delivered an overwhelming victory to pro-democracy candidates.
But protesters stirred support for more rallies over the weekend, as police withdrew on Friday from a university campus where some of the worst clashes with security forces had occurred as part of nearly six months of unrest.
Shares in Cathay rose 0.8% on Friday, outperforming a 2% drop in the broader market.
(Reporting by Jamie Freed in Sydney; Writing by Miyoung Kim; Editing by Clarence Fernandez and Christian Schmollinger)
A passenger walks to the First Class counter of Cathay Pacific Airways at Hong Kong Airport in Hong Kong
4x weekly service from Kuala Lumpur to the “Oasis of Japan” via Taipei
SEPANG, 30 October 2019 – AirAsia today announced a new route from Kuala Lumpur to Okinawa Naha, strengthening its position as the Malaysian carrier with the most connections and capacity in Japan.
The four times weekly service via Taipei commences 22 January 2020 (subject to regulatory approvals), and will be AirAsia’s sixth international destination in Japan, after Tokyo (Haneda and Narita), Osaka, Sapporo, Fukuoka and Nagoya (via Bangkok).
AirAsia X Malaysia CEO Benyamin Ismail says, “Our rapid expansion into Japan continues following the launch of services to Fukuoka and Tokyo Narita earlier this year. Okinawa is an island paradise that offers a different Japanese experience for leisure travellers, including white sandy beaches with clear blue waters, some of the world’s most famous diving spots and unique Ryukyuan cuisine.
“Like Fukuoka, we are building the foundation for more AirAsia flights to serve Okinawa in the near future, strengthening our regional network and allowing more travellers to discover the unique cultural heritage of this amazing destination.”
Members-only fares from Kuala Lumpur to Okinawa Naha start from RM239* one-way on standard seats and RM899* one-way on the award-winning Premium Flatbeds, available on airasia.com from tomorrow 31 October 2019 at 12:00 pm (GMT+8) until 2 November 2019 for travel between 22 January 2020 and 27 March 2020.
Guests from Kuala Lumpur to Okinawa Naha are not required to obtain a visa during their one hour fifteen minutes stopover in Taipei and may return to their seats after clearing a quick security check of their carry-on bags and inflight belongings.
Okinawa is one of Japan’s 47 prefectures comprising 160 islands in the East China Sea. With its unique cultural heritage and local cuisine, Okinawa has long been a holiday destination for the Japanese, while its subtropical climate, coral-fringed waters and relaxed way of life attract throngs of international tourists looking for an alternative to the hustle-bustle of major cities in mainland Japan.
For the latest AirAsia news, activities and promotions, follow AirAsia on Twitter (twitter.com/AirAsia), Facebook (facebook.com/AirAsia) and Instagram (instagram.com/AirAsia).
* Promotional all-in-fares are for AirAsia BIG member only. All-in non-member fares start from RM244 for one-way travel inclusive of taxes. Terms and conditions apply.
